Deliveroo is pitching to buy back £250m worth of shares by way of a tender offer at a price of between 115p and 135p per share.
The delivery company said this represents a premium of 6% to 24% to the closing price of A Ordinary Shares on 26 September 2023, or a discount of 3% to a premium of 14% to the volume-weighted average price of A Ordinary Shares over the last 90 days to 26 September 2023.
The tender offer opens on tomorrow (29 September) and will close at 1pm on 27 October 2023. The proceeds are expected to be despatched to shareholders in early November 2023.
Deliveroo announced its intention to return £250m to shareholders on 10 August 2023. This is in addition to the £50m return announced in March 2023.
The scheme comes as result of the structural surplus of cash in the business following the company’s review of its capital structure, growth opportunities and required cash balances.
Directors including CEO Will Shu do not intend to participate in the offer.
If the full £250m is not returned to shareholders, the board intends to undertake a second phase to return any remaining balance by way of an on-market share buyback and/or a special dividend to shareholders.
